rjk514
Recycles dryer sheets
New 6-mo rate coming out on May 1st..Inflation on the rise...your thoughts on what the new rate might be...hopefully better that the 4% plus that they are now...otherwise cash in??
clifp said:I have modest number of Ibonds with a 3.4% or 3.6% real rate. I think I am going to be keeping those for a long time.
FinanceDude said:Why??
3.4-3.6% isn't that good of a rate these days...........
Jarhead* said:3.4 and 3.6 plus inflation aint bad.
Just pay close attention to the timing of your sale and when the rates change on your bonds. I sold some lousy 2003 I-bonds (1.1 fixed I think) but waited until I had finished collecting through a good inflation period and then sold when the penalty interest being forfeited was during a low inflation period -- something like 2.2% total. If you search threads here and calculate the interest accruing on your bonds on the first of the month you will be able to figure out the best time to sell. Explanations on this are never very clear so I'd recommend looking at your interest and calculating the return yourself so you know exactly when the rate changes and which rate you are giving up.rjk514 said:but I always wanted
to say to the goverment---(YOUR FIRED!!!!!!!!!!!!!!!!!)
In addition if you going to RE soon, like next year (and changing to a lower tax bracket),terminator said:Just pay close attention to the timing of your sale and when the rates change on your bonds. I sold some lousy 2003 I-bonds (1.1 fixed I think) but waited until I had finished collecting through a good inflation period and then sold when the penalty interest being forfeited was during a low inflation period -- something like 2.2% total. If you search threads here and calculate the interest accruing on your bonds on the first of the month you will be able to figure out the best time to sell. Explanations on this are never very clear so I'd recommend looking at your interest and calculating the return yourself so you know exactly when the rate changes and which rate you are giving up.
Probably because that was/is the rate for the previous period (3% fixed + 3.1% inflation). If you're within five years of purchase the "current" interest rate is delayed by three months as a manner of showing the penalty for early redemption.Sundance Kid said:I have some I-Bonds, paying a real rate of 3.0%. With the new inflation rate of 2.42%, I calculate my interest rate at 5.42%.
Savings Bond calculator indicates my interest rate is 6.15%. What is it, that I'm missing? What accounts for the difference?
I remember Mel Lindauer over at the Vanguard Diehards board was going to mortgage his house and max his credit card to buy those when the rates were announced...clifp said:I have modest number of Ibonds with a 3.4% or 3.6% real rate. I think I am going to be keeping those for a long time.